The relative importance of manufacturing in differing parts of the world has changed over time. Manufacturing has declined in importnace in some regions while it has become more significant in other. In many of the richest areas of the world, manufacturing has declined. In the UK the number of people employed in manufacturing fell from just over 6 million in 1981 to 3.5 million in 2003. The credit crunch in recent years will have reduced the numbers to less than 3.5 million. This is the result of de-industrialisation, which has occurred because of increased mechanisation and the need for industry to be competitive (i.e. to make a profit).
- download this file to view information on NICs - Newly Industrialised Countries
Reasons for change:
There are many reasons why some areas have experienced growth in manufacturing industry whereas others have suffered a decline.
Government legislation
This can take many forms, such as:
setting up areas (assisted areas/enterprise zones) where conditions are favourable for new industry
provding advanced factories of various sizes
offering retraining and removal expenses
ensuring eduicational reform is high on the list in areas such as the four 'Asian tigers'
adding taxes to home-produced goods so that exports are targeted
TNCs often set up in LEDCs due to lower wages which have to be paid to workers. Many MEDC have minimum wages, in the UK, this is £5.73 for those aged 22 years and older, but in Sri Lanka garment workers are often paid a fraction of a much lower minimum wage. An EU directive limits the maxiumu number of hours worked per week to 48 (except the UK). The average South Korena works 2,390 hours a year in contrast to 1,652 in the UK. This has real implications for production. In Sri Lanka, garment workers should not work after 10pm due to International Labour Organisation rules, but they are often forced to do so by their employers.
Health and safety regulations
Working conditions tend to vary globally. In the UK, adult employees working over six hours are entitled to a 20-minute break. Workers have the right to:
konw how to do their job safel and to be trained to do so
know how to get first aid
know what to do in an emergency
be supplied with protective clothing
Such regulations do not exist in some poorer countires or are not enforced. Some workers - unable to travel home after a shift and arrive back on time for the next shift - sleep on the factory floor, although this is illegal.
Prohibition of Strikes
Many companies set up in LEDCs as they do not have unions protecting their workers. This generally means that they can't call strikes as this could leave the workers losing their jobs.
Tax incentives and tax-free zones
Tax incentives take a variety of forms, but all seek to offset costs. For example, One NorthEast ( the development agency responsible for the north-east of England) offers job-creation grants, business rate or rent-free periods and help in preparing a business plan while the government gives a grant towards the cost. Tax-free zones are designated as free from the paying of tax and include zones such as areas of Dubai and Zambia.
Two videos showing some of the conditions people have to work in, in a sweatshop:
.
The relative importance of manufacturing in differing parts of the world has changed over time. Manufacturing has declined in importnace in some regions while it has become more significant in other. In many of the richest areas of the world, manufacturing has declined. In the UK the number of people employed in manufacturing fell from just over 6 million in 1981 to 3.5 million in 2003. The credit crunch in recent years will have reduced the numbers to less than 3.5 million. This is the result of de-industrialisation, which has occurred because of increased mechanisation and the need for industry to be competitive (i.e. to make a profit).
Reasons for change:
There are many reasons why some areas have experienced growth in manufacturing industry whereas others have suffered a decline.
Government legislation
This can take many forms, such as:
- setting up areas (assisted areas/enterprise zones) where conditions are favourable for new industry
- provding advanced factories of various sizes
- offering retraining and removal expenses
- ensuring eduicational reform is high on the list in areas such as the four 'Asian tigers'
- adding taxes to home-produced goods so that exports are targeted
TNCs often set up in LEDCs due to lower wages which have to be paid to workers. Many MEDC have minimum wages, in the UK, this is £5.73 for those aged 22 years and older, but in Sri Lanka garment workers are often paid a fraction of a much lower minimum wage. An EU directive limits the maxiumu number of hours worked per week to 48 (except the UK). The average South Korena works 2,390 hours a year in contrast to 1,652 in the UK. This has real implications for production. In Sri Lanka, garment workers should not work after 10pm due to International Labour Organisation rules, but they are often forced to do so by their employers.Health and safety regulations
Working conditions tend to vary globally. In the UK, adult employees working over six hours are entitled to a 20-minute break. Workers have the right to:
- konw how to do their job safel and to be trained to do so
- know how to get first aid
- know what to do in an emergency
- be supplied with protective clothing
Such regulations do not exist in some poorer countires or are not enforced. Some workers - unable to travel home after a shift and arrive back on time for the next shift - sleep on the factory floor, although this is illegal.Prohibition of Strikes
Many companies set up in LEDCs as they do not have unions protecting their workers. This generally means that they can't call strikes as this could leave the workers losing their jobs.
Tax incentives and tax-free zones
Tax incentives take a variety of forms, but all seek to offset costs. For example, One NorthEast ( the development agency responsible for the north-east of England) offers job-creation grants, business rate or rent-free periods and help in preparing a business plan while the government gives a grant towards the cost. Tax-free zones are designated as free from the paying of tax and include zones such as areas of Dubai and Zambia.
Two videos showing some of the conditions people have to work in, in a sweatshop:
.